TRAINING SUPPLY MARKET ANALYSIS

Training Analisis Pasar Penyediaan

Training Contracting Authority’S Value As A Customer

INTRODUCTION:

While understanding of supply market has improved, there  needs to be better  understanding in contracting authorities of the suppliers and the markets in which they operate and how these shape the nature and availability of goods or services used by these authorities. Supply market analysis is a technique  which  enables a  contracting  authority to understand how a market works, the direction in which a market is heading, the competitiveness of a market, the key suppliers and the value that suppliers place on the contracting authority as a customer. This can help inform, improve and shape the tendering process leading to improved  procurement outcomes such as  better  value for money or service, reduced prices or achieving whole of government outcomes.

TRAINING OBJECTIVES :

* To develop an in-depth understanding of the supply market for products/services/capital equipment purchased
* To identify and evaluate key players in the supply market
* To analyze industry trends and forces
* To provide hands-on training in gathering industry information
* To prepare a Supply Market Analysis Report for use in sourcing and negotiation
* To enhance the credibility of buyers/commodity managers with the power of knowledge.

TRAINING MATERIAL OUTLINE SUPPLY MARKET ANALYSIS

1.    Conducting the analysis of supply market
* Before commencing any market analysis, the relevant individual or group in the  contracting authority should consider the aims and objectives of this research so that the analysis will provide the answers required within the time available.  For example the individual or group may want to consider whether the contracting authority is seeking
* a reduction in  cost  and requires information on how the market prices a particular good or service
* to understand  the range of suppliers in the market and the goods/services they provide in order to develop an appropriate specification
* to understand the latest trends in technology in a particular sector
* achieve a specific whole of Government objective such as developing an innovative product or service, achieving a specific  environmental standard or a particular social objective

2.    Analytical framework for supply market analysis

The information gathered during the research phase can be analysed using the supply market analysis framework which provides a structure for the analysis. This framework  can be used to  examine the supply market for a good or service and focuses on five key areas;
* Market structure
* Competition
* Supply chain
* Substitute goods and services
* The contracting authority’s value as a customer

3.    Better knowledge of supplier strategy

Understanding how individual suppliers  operate, their market position, why they want to deal with the  contracting authority and  understanding their longer term goals  helps  obtain value for money. Analysing supply markets may:
* Provide valuable information about suppliers’ strengths and weaknesses. For example, the  contracting authority may discover that a particular supplier is keen to win a Government contract or a supplier may have difficulty fulfilling orders.
* Identify comparable substitute goods and services  that  may be available  from more  competitive and less risky supply markets and could  offer better value for money
* Understand which suppliers are more technologically advanced in particular sectors
* Identify opportunities to better manage the supply chain1 that will reduce the cost of purchasing goods or services
* Allow the contracting authority to become aware of all potential suppliers (in a market with a limited number of suppliers, it is advantageous for the  contracting authority to encourage all  suppliers to tender).
* Provide a sound understanding of the  contracting authority’s attractiveness as a customer  for the supplier. The more important the contracting authority is to the supplier in terms of the business generated the more likely better service and price becomes available from that supplier.

4.    Manage risk for the contracting authority
* Analysing supply markets assists in determining  the  risks involved in purchasing particular goods or services. It can  also  identify ways to manage these risks. Analysing supply market may:
* Assist in the development of specifications to encourage competitive offers and reduce the  possibility  of purchasing goods or services which are not fit for purpose. Specifications are often set which are too restrictive and reduce the number of potential suppliers. This is often the result of a limited knowledge of alternatives.
* Identify opportunities to increase the base of suppliers to meet the needs of contracting authorities.

5.    More informed contracting authority

One of the aims of the procurement management reform process is  to help create a more informed contracting authority. With market analysis, the  contracting authority understands how  technology and other factors are driving changes in the market for the particular goods or services it requires. The contracting authority  understands how goods and services are priced and how service quality and standards are set by suppliers. Contracting authorities  who understand markets and suppliers are better able to develop tenders which reflect conditions in  that market. Indeedthey are able to help develop the market or suppliers so it can provide the goods or services necessary to the functioning of the  contracting authority. They are also able to deal with suppliers on a more equal basis when contracts are in place.

6.    Allow for the identification of opportunities to advance government priorities

Government policy requires value for money outcomes from procurement and this can include achieving whole of Government objectives. Procurement can assist in the development of environmental or social initiatives or it can become a force for innovation and help support small and medium enterprises to develop their potential.An informed knowledge of the market and the capabilities of suppliers can help bring a  better  approach to achieving whole of government objectives when contracting authorities are tendering. Thus, an informed knowledge of the ICT sector may allow for a tender which seeks an innovative response from the small business  software  sector. A better understanding of changes in environmentally friendly technology could help improve environmental outcomes from procurement.

7.    Competition
* Do suppliers compete on quality, service, price and/or other factors
* What are the trends in the supply market (for example, has product price consistently been reducing)
* Is there any obvious competitive advantage held by a supplier
* Are there any trade restrictions in the market
* Is there impact of any trade, consumer or environmental legislation
* What is the position of the product in its product life cycle, early, middle or late?

8.    Supply Chain
* What firms make up the supply chain
* How complex is the supply chain
* What does each member of the supply chain contribute to the end product (the level of value-adding)
* What are the delivery or transportation methods in the supply chain
* Are there any potential areas of supply vulnerability within the chain
* Are there any more efficient sources of supply

PARTICIPANT:

* General Manager
* Supply Chain Manager
* Marketing Manager
* Purchasing Manager
* Staff who was related for this training

METODE TRAINING

1. Presentation
2. Discuss
3. Case Study
4. Evaluation
5. Pre-Test & Post-Test
6. Games

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